GBP/USD climbs to new multi-week highs around 1.2380


  • GBP/USD gathers fresh upside traction and approaches 1.2400.
  • The greenback accelerates losses and trades closer to 102.00.
  • US final Q4 GDP Growth Rate disappointed estimates.

Further losses in the greenback allow GBP/USD to pick up extra pace and reach the 1.2380 region, or multi-week highs, on Thursday.

GBP/USD stronger on USD-selling

GBP/USD sees its upside pressure intensify on the back of the persistent selling pressure in the greenback and the solid improvement in the risk complex on Thursday. The marked knee-jerk in the dollar came in response to higher-than-expected inflation figures in Germany, which could reinforce the case for further tightening by the ECB as soon as at the May gathering.

In the meantime, price action around the British pound appears underpinned by the better tone among its risk-linked peers, while the continuation of the hiking cycle by the BoE should offer some extra support to the quid despite the "Old Lady" could be approaching its peak on rates.

There were no data releases across the Channel on Thursday, while US GDP Growth Rate expanded below consensus 2.6% YoY in Q4 and Initial Jobless Claims rose by 198K in the week to March 25.

GBP/USD levels to consider

As of writing, the pair is gaining 0.40% at 1.2361 and the breakout of 1.2380 (monthly high March 30) would open the door to 1.2447 (2023 high January 23) and then 1.2666 (monthly high May 27 2022). On the other hand, the next support emerges at 1.2160 (55-day SMA) followed by 1.2010 (weekly low March 15 and finally 1.1892 (200-day SMA).

 

Share: Feed news

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended content

Editors’ Picks

EUR/USD hovers around 1.0700 amid mixed sentiment

EUR/USD hovers around 1.0700 amid mixed sentiment

EUR/USD is trading close to 1.0700, struggling to build on the previous bounce early Monday. European political uncertainty continues to undermine the Euro and cap the pair's upside. The cautious mood acts as a tailwind for the USD and favors EUR/USD bearish traders. 

EUR/USD News

GBP/USD hangs near its lowest level since early May, seems vulnerable below 1.2700

GBP/USD hangs near its lowest level since early May, seems vulnerable below 1.2700

GBP/USD is seen consolidating its recent losses to over a one-month low touched on Friday. The Fed’s hawkish outlook continues to underpin the USD and exerts pressure on the major. The divergent Fed-BoE policy expectations could lend some support and limit deeper losses.

GBP/USD News

Gold sellers regain control, eye a sustained move below $2,300

Gold sellers regain control, eye a sustained move below $2,300

Gold price is reversing a part of Friday’s upswing, having faced rejection once again above the $2,330 level early Monday. Gold price fails to benefit from a pause in the US Dollar upsurge, as the US Treasury bond yields recover after last week’s downward spiral.  

Gold News

Bitcoin retesting its major resistance level

Bitcoin retesting its major resistance level

Bitcoin price is retesting its weekly resistance level of $67,147. Ethereum price finds support around $3,321, the price imbalance between $3,146 and $3,498. Ripple price faces rejection due to the key resistance level of $0.499.

Read more

Busy week ahead: What are markets watching this week?

Busy week ahead: What are markets watching this week?

This week is gearing up to be another eventful calendar for policy watchers, welcoming three updates from the Reserve Bank of Australia (RBA), the Swiss National Bank (SNB) and the Bank of England (BoE). 

Read more

Forex MAJORS

Cryptocurrencies

Signatures